b2b integration: what is b2b managed services? how can it help?
Post on 22-Oct-2014
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B2B Managed Services promises to reduce the complexity, cost, and risk in your B2B integration programs and projects. But what, exactly, is it? And how does it do that? I encourage you to view the webinar version of this presentation http://bit.ly/mD3xWSTRANSCRIPT
B2B Managed Services: What Is It, Really – And Will It Work
for Me?A “Knowledge is Power” Primer
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Agenda
B2B Managed Services What is it…really
Why are companies considering this approach
How does this approach address business challenges
How are companies benefiting
Why should organizations consider it
What to look for when selecting a provider
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Today’s Speaker
Ryan KraudelDirector
Global Product ManagementGXS
Leveraging 15 years experience, works closely with customers around the world to help develop their business, marketing and technology strategies
Eight years with GXS leading the team responsible for strategy, development and execution of GXS’s portfolio of B2B managed service
Global speaker and actively involved in several B2B e-commerce industry organizations and standards bodies
Prior to GXS, held senior positions at webMethods, Porter Novelli, BMC Software, PricewaterhouseCoopers
Holds MBA from University of Maryland
Avid runner along side “Tucker,” his brown lab and best buddy
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B2B Managed Services
What is it?
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Includes these components: B2B infrastructure management (hardware, software,
operations) Mapping and data translation Protocol mediation Trading community implementation Transaction monitoring and reporting Transaction error resolution Customer/trading partner support
Definition: b·2·b man·aged ser·vic·es
Management of your day-to-day B2B transaction activities by a trusted, experienced partner
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In-House B2B Program Environment
GXS Managed Services Environment
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B2B Managed Services A Better Approach for Better B2B Execution
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Large and Growing Market Adoption
Benefits include an annual average return-on-investment of 250%
Business partner satisfaction is increased with a 75% improvement in B2B capabilities
New sales are accelerated by a 4-fold increase in customer implementation timeframes
On average, customers reduce total costs of integration by 20-40% versus in-house operations
$1,047 $945 $895 $846
$704 $848 $1,047
$1,807
$769 $720$724
$854
$252 $273$301
$390
0
1,000
2,000
3,000
$4,000
2008 2009 2010E 2013E
9.0%
2.1%
20.8%(4.2%)
$2,771 $2,786
$2,967 $3,896
Total B2B Market
Size
3 yr CAGR
B2B Outsourcing
IaaS (VAN)
Other B2B SoftwareB2B Middleware Software
Source: Gartner, Market Trends: Multi-enterprise/B2B Infrastructure Market, Worldwide, 2009-2014, 14 July 2010
Sources: 1. B2B Outsourcing Value Study conducted by Stanford University – Global Supply Chain Management Forum2. Total Cost of Ownership Study and Financial Model conducted by Hobson & Company3. ERP Projects Create Significant Opportunities by AMR Research
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B2B Managed Services
Why are companies like mine considering this approach?
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B2B e-Commerce is Costly, Complex, Continuous
Costly Complex Continuous
Perpetual Maintenance Fees
Rapidly Growing Storage Footprint
Labor-Intensive Increasingly
Customized
Enterprise Integration Very Large File
Transfer EU Invoicing
Regulations Multilingual Support
ERP Upgrades Dynamic Trading
Partner Community Post M&A
Consolidation New B2B Standards
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Challenges Multiply in anIncreasing Global Reality
Companies like yours are expected to achieve more and more each year, even though their budgets remain
the same or become smaller.
Regions Supported
Trading Partners
ProjectRequests
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Key Business Challenges
ERP Projects
Customer Integration
Centralization/Consolidation
New Markets/Channels
Modernization
Cost Reduction
Workforce Optimization
Addressing B2B Challenges in a Dynamic World
“A Knowledge is Power” Primer
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B2B Managed Services
So how does this approach address
these challenges and provide value to my
organization?
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ERP Projects
Business Impact: Any change to ERP data structure causes
costly/time-intensive to upgrade maps ERP project delays due to complexities Data error rates impact bottom line
B2B Managed Services: Shift B2B operations to third party to
focus limited internal resources on ERP Robust testing and implementation
processes ERP “firewall” to ensure data quality &
compliance
How to Maximize Your Investments in
ERP
“A Knowledge is Power” Primer
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Customer Integration Challenges
Business Impact: Inability to meet customer integration
requirements Poor customer satisfaction Delayed revenue Long on-boarding cycle for partners
B2B Managed Services: Support for a wide variety of customer
integration options Quickly on-board new partners…any size,
any location, any technical capability Access global network of trading partners
How to Become Easier to Do
Business with
“A Knowledge is Power” Primer
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Centralization/Consolidation
B2B Managed Services: Cost avoidance One connection to entire trading
community Eliminate overlapping systems Monitoring/visibility advantages Consistent services across regions and
business units
Business Impact: Limited visibility, higher costs Fragmented B2B networks and
infrastructure—costly and inefficient Decentralized business decisions
How to Gain Control and Visibility Across
Fragmented Operations
“A Knowledge is Power” Primer
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New Markets/Channels
Business Impact: Lack of resources and/or expertise in
new market or channel Expansion failures Missed sales/revenue opportunities
B2B Managed Services: Instant global footprint of skills,
resources, and knowledge Established global trading network Cross cultural competencies Multi- language support
How to Rapidly Expand into New Markets and New
Channels
“A Knowledge is Power” Primer
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Modernization
Business Impact: Inability to meet trading partner
requirements and business objectives Higher costs to support Unable to scale growth
B2B Managed Services: Meet trading partner requirements with
lower capital expenditures Future cost avoidance Enable successful growth objectives Immediate access to latest technologies
How to Modernize without Increasing
Costs or Risk
“A Knowledge is Power” Primer
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Cost Reductions
Business Impact: On-going pressures to reduce costs Maintaining up-to-date infrastructure Limited budget for new capabilities
B2B Managed Services: Control on-going investments Connect with diverse partners
regardless of size, location, technical capabilities
Access to skills you need, when you need
How to Do More with Less
“A Knowledge is Power” Primer
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Workforce Optimization
Business Impact: Critical B2B project delays e.g., ERP
Integration Poor customer satisfaction, delayed IT
projects Inability to meet on-boarding requirements Skills shortage, high costs to train/retrain
B2B Managed Services: Refocus valuable IT resources Access skills you need, when you need Gain B2B specialists/expertise on your team Improve productivity/meet deadlines Lower operating costs
Can Your IT Resources Keep Up
with Continuous B2B Change and Advances?
“A Knowledge is Power” Primer
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B2B Managed Services
How are companies benefiting, and why should my organization be considering it?
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Leading Consumer Goods CompanyCustomer Case Study – GXS Managed Services
Exchanges &Data Pools
Direct RetailerConnections
Global Europe Americas Asia Pacific
Internal IntegrationPlant-to-Plant and Plant-to-HQ
B2B IntegrationInternet Communications & Document Translation
Other Retailers
AS2Direct
Connection
InternetDirect
Connection
Other RetailersChallenges:
Current Global Platform
Represents only 25% of EDI
Deployed in 35 markets
700 trading partners and 300 maps
Multiple local VAN providers
Connectivity to SAP ERP
Solution: Consolidated fragmented EDI solutions across 100 markets into a single global solution
Integration with 4 major SAP ERP instances deployed regionally
Enable localized support for country specific requirements (e.g., e-invoicing)
Deploy SAP Global Trade Services to connect to country customs authorities
Connectivity services for partners not capable of using AS2
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Distributors CustomersLogistics Carriers
ERP Integration
Map and Forms Dev
Change Management
Activity Monitoring
Community On-boarding
Technical Support
ORDERS, DELJIT, DELFOR, DESADV, INVOIC
X.400, AS2, FTP, SFTP
Challenges:
Legacy IBM AS400 B2B translator (out of support)
4 different VAN providers globally
Existing B2B systems did not support customers demands
Concerns over B2B impact on future growth plans
Solution: Scalable Environment Improved Efficiencies, Partner Relationships & Enabled Growth Direct integration to SAP for IDOC
transactions
Connection to 61 trading partners
Localized support for country specific requirements
Support for EDIFACT, Tradacoms, IDOC,and flat file formats over AS2, X.400, FTP, SFTP
Multinational Building Materials ProducerCustomer Case Study – GXS Managed Services
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B2B Managed Services
What should I be looking for when selecting a B2B Managed Services provider?
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ExperienceTime-tested, most customers, brand-name references, migration best practices
Global ReachOperations span the globe, 24x7 worldwide multi-language in 15 languages, global data centers, Global Centers of Excellence
Leadership and InnovationAnalyst-validate, top segment share, financial stability
Quality & ReliabilityQuarterly SAS 70 Type II certification, PCI, ITIL, designated Project Managers, proactive BAM, HA/DR investment
Community CollaborationProven on-boarding methodology, pre-connected trading partners, cross industry
Proven Scale Worldwide customers, processes billions of transactions annually, thousands of maps in production, experienced mappers
Selecting a B2B Managed Services Provider
High Availability Architecture Cloud-based integration platform, dual-legged environment, limited maintenance windows, disaster recovery – multi-data center fail-over
Flexibility and SpeedMultiple ways to connect, including: web forms, Excel, ERP adapters, interconnects, direct connects
ERP Integration CompetenceSAP-certified, Microsoft-recommended, Oracle experience, 30+ hosted adapters, any-to-any data mapping
Managed Services Focus% of revenues, services investments, commitment to success
KNOW-HOW
TECHNOLOGY
PROCESSES
PEOPLE
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B2B Manages Services Checklist
When it comes to technology, a provider should have______?
When it comes to experience, a provider should have_______?
Finally, a vendor should have the right
people and proven
processes. Look for a provider with_______?
Download checklist at www.b2bmanagedservices.com
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Further Information
Additional Resources
www.b2boutsourcing.co.ukwww.b2bmanagedservices.com
http://blogs.gxs.com/
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Thank You for Your Participation
For More Information
Phones
US: 1-800-334-5669, option 3
EMEA: +44 (0) 1932 776047
ASPAC: +852 2884 6088
Japan: +81-3-5574-7545
GXS Web Sites
US: www.gxs.com
EMEA: www.gxs.eu
ASPAC: www.gxs.asia.com
Japan: www.gxs.co.jp
Presenters:Ryan Kraudel, [email protected]
Ruth-Ann Femenella, [email protected]